< PreviousBRINGING TOGETHER PHYSICAL AND MENTAL WELL-BEING Our personal well-being is closely intertwined with the state of our health. For this reason, sages of the ancient world have long taught about the importance of the art of living a balanced lifestyle that combines fitness and health with emotional well- being and relationships. Despite the passing of time since such knowledge was discovered, healthy living remains as relevant as ever in today’s world. Due to the increasing demands of the modern way of life, however, chronic diseases and other health conditions have been on the rise. An increase in office work environments, coupled with the frequent use of smartphones and computers, adds to the growing prevalence of inactivity, not helped by the easy availability of processed foods rich in sugar, salt, saturated fats and calories, while more stress and anxiety arising from the frantic rush of everyday life ultimately takes its toll on our mental well-being. Indeed, physical and mental well- being constitute two important components of overall health. Not Dr Damien Ng, next generation research analyst at Swiss wealth manager Julius Baer, makes a case for investing in physical and psychological well-being $35.5bn The projected economic burden of diabetes in the MENA region by 2045, according to Colliers International Is your health the new wealth? only can individuals be debilitated by chronic physical conditions, such as cardiovascular disorders, diabetes, hypertension and obesity due to unhealthy diets and the lack of movement, mental health issues that may be either related to the coronavirus pandemic or other general considerations can also affect them. The pandemic has prompted a growing number of people to turn to healthier lifestyle habits to keep their immune systems strong while boosting their psychological morale during these extraordinary times. The consequence of people living better and happier will inevitably have profound implications for our society and economy. 20 Vol. 22/15, October 2021 INSIGHT / HEALTHCAREGreater consumption of salt and sugar worldwide In recent years, excessive consumption of salt and sugar has come to the attention of public health authorities and medical professionals for the growing incidence of hypertension, cardiovascular diseases, diabetes, obesity and certain types of cancer. In the case of sugar, Gulf residents have been observed to consume the highest sugar on a per capita basis due to the availability of soft drinks and sweet but very delicious local desserts. For instance, an average inhabitant of Bahrain consumes around 250 grams of sugar on a daily basis. This is significantly more than in other countries, such as 130 grams in the US. Nevertheless, the American Heart Association recommends that women should not consume more than 25 grams of added sugar a day, and men 36 grams. After all, too much sugar is widely associated with higher incidence of diabetes and obesity over the longer term. For instance, national prevalence of diabetes in Saudi Arabia and the UAE exceeds 16 percent. Naturally, it also means that blood sugar monitoring systems, oral and other types of medication, and insulin injections will be one of the major foci of the region’s medical care. Mental health is increasingly becoming a priority The plight of a growing number of people suffering from emotional stress during the pandemic has increasingly drawn the attention of healthcare professionals to the need of tackling mental well-being. The lockdown measures and the resulting economic slowdown have adversely affected many people’s mental health. While it is understandable that many people experienced nervousness and the fear of contracting the virus during the global health threat, public health measures such as social distancing, working from home, temporary unemployment and the home schooling of children made many feel more anxious and isolated due to a lack of physical contact with other family members, friends and colleagues. Nevertheless, anxiety and other mental disorders were already prevalent prior to the outbreak of the global health crisis. According to the WHO, national prevalence of anxiety disorders in Australia, the Netherlands and the US surpasses 6 percent. By contrast, it is around 4 percent in Saudi Arabia, China, Japan and the UAE. This phenomenon appears to suggest that in cultures where family ties remain strong, there may be a greater degree of emotional and tangible support. Winners of the theme hail from a mix of consumer and defensive sectors: Investing in health From an investment perspective, Julius Baer maintains a constructive view on the long-term investment opportunities relating to healthy living, due to the growing awareness about the importance of reinforcing our immune systems to keep diseases at bay. This is particularly important against the backdrop of the persistently rising incidences of hypertension, diabetes, and obesity across the world. Given the broad scope of industries involved in the theme, the winners come from a mix of consumer and defensive sectors. In particular, companies engaged in the retail and distribution of fresh fruits and vegetables, and the manufacture of organic food and beverages; athletic footwear, wearables and sports equipment; beauty and personal care products, as well as healthcare relating to cardiovascular, diabetes and kidney malfunction, plus musculoskeletal and mental disorders. “An increase in offi ce work environments, coupled with the frequent use of smartphones and computers, adds to the growing prevalence of inactivity” arabianbusiness.com 21 / HEALTHCARE u National prevalence of diabetes in Saudi Arabia and the UAE exceeds 16 percent u The current pandemic situation has adversely affected many people’s mental health 22 Vol. 22/15, October 2021 SUSTAINABILITY: WHY IT NEEDS TO BE EMBEDDED IN YOUR COMPANY DNA SPO TLIGHT Didier Laffi neur, regional managing director of Ferrero Gulf, explains why it’s critical for businesses across sectors – including FMCG – to move beyond simple corporate social responsibility initiatives Over the years, sustainability has become somewhat of a business buzzword. After all, amidst alarming climate change, environ- mental damage and human population growth numbers, it didn’t take much convincing for corporate leaders to realise that the world around them was changing at an accelerated pace. As a result, many industries – including FMCG – underwent seismic, irrevocable shifts to integrate sustainability into their strategy, disrupting their traditional business models along the way. Today, when it comes to sustainability, the path forward for companies is clear: it is no longer an option or a ‘good to have’ but a business imperative. And in this pandemic era, this rings truer than ever. The fact is, for businesses and consumers alike, the coronavirus has sparked even stronger interest in sustainabil- ity. This isn’t simply because the health crisis shed light on the socio-economical inequali- ties that exist on multiple fronts across the globe. It is also because people have become more conscious of how global factors can meaningfully impact their lives. Safeguarding the future At Ferrero, we’ve long understood the importance of sustainability, which is why our commitment to it goes back a long way. What has evolved over time, however, is our approach. u Laffi neur says Ferrero Group is committed to managing and reducing its environmental impactsarabianbusiness.com 23 / SPOTLIGHT In the past, we used the broader term ‘corporate social responsibility’ to outline through our annual report how sustainability seeps into every stage of our supply chain: ranging from caring for the people who have made and make the history of the group to the support of local communities, the promotion of active lifestyles, our strong commitment to sustainable farming practices and safeguarding the environment. Last year, we introduced a new approach to our progress report – one designed to streamline and increase the transparency of the group’s sustainability efforts. This year, in our 12th Sustainability Report, we describe our action to go beyond what we have achieved as we grow our global business. This includes remaining steadfast in delivering our sustainability commitments under the challenging environment shaped by the pandemic. Essentially, as we are closing out the 2020 goals, the current report showcases how we are planning to go beyond the strong foundations we already built. In reality, we have been undergoing a period of transition, defi ning new objectives that will drive further progress across the period up to 2030. The new commitments will build on lessons learnt over the past decade as well as the evolving global context and changing stakeholder needs. Today, our responsible way of doing things focusses on four pillars: Protecting the environment, sustainably sourcing high- quality raw materials, promoting responsible consumption and empowering people. We have set out ambitious targets under each of these clusters, which together form our sustainability framework. When it comes to the planet, we, as Ferrero, are committed to managing and reducing our environmental impacts. We are driving environmental effi ciency in our operations and supply chain, reducing emissions and water consumption, and increasing the circularity of our manufacturing and packaging. In fact, with renewable energy being so critical to Ferrero’s efforts to achieving its carbon reduction goals, in the 2019/20 fi scal year, we purchased 100 percent green electricity for our manufacturing plants in Europe, and 71.5 percent of the electricity purchased globally was from renewable sources. And as part of our support for the circular economy, in 2019 we announced a commitment to make 100 percent of our packaging reusable, recyclable or compostable u Sustainability is a long-term, evolving journey for the Ferrero Group 71.5% The percentage of the electricity purchased by Ferrero Group globally in 2019/2020 which came from renewable sources “At the very core of the Ferrero way of doing things is the goal to be a positive force for good” by 2025. As of 2020, we had achieved 82.9 percent and we continue with our strong commitment to fulfi lling this journey. With regards to sourcing raw materials, we are focussed on building a thriving supply chain that empowers farmers and their communities and protects people and the environment. We are proud to say that we have achieved our 2020 goal of sourcing 100 percent sustainable cocoa beans through independently managed schemes, and 100 percent certifi ed cane sugar through Bonsucro and Altromercato. For us, promoting responsible consump- tion means striving to offer products of the highest quality and freshness and always endeavoring to communicate responsibly. Lastly, to empower our people, we will continue to develop and motivate them, with a focus on strengthening diversity and inclusion across the business. Overall, it is our company purpose “We care for the better” that inspires and drives our sustainability agenda. Our global initiatives aim to have a positive impact on employees, consumers, families and the local communi- ties in which we operate. In the end, at the very core of the Ferrero way of doing things is the goal to be a positive force for good. As our company keeps growing, that vision will continue to dictate our outlook to the future. To conclude, for us, sustainability is a long-term, evolving journey that doesn’t just need to be embraced as a commitment but also pushed deep into every aspect of our business’ DNA.C OVER S T O RY / UA E-UK DEAL COVER STORY BY SCOTT ARMSTRONG After the historic deal between the UAE and UK, Simon Penney, Her Majesty’s Trade Commissioner for the Middle East and Her Majesty’s Consul General for Dubai, sits down with Arabian Business in an exclusive interview A $13.8BN FRIENDSHIP THAT WILL ‘DRIVE WORLD ECONOMIES FORWARD FOR DECADES’26 Vol. 22/15, October 2021 which saw Mubadala commit £800m ($1.1bn), and the UK Government £200m ($277m), to UK life sciences when the partnership was established in March. The SIP will become the central investment platform under the new Partnership for the Future bilateral frame- work, which was agreed at a meeting between UK Prime Minister Boris Johnson and nership (UAE-UK SIP). The megadeal, between the UK Office for Investment and Abu Dhabi’s Mubadala Investment Company, will drive over the next five years increased investment into sectors including technol- ogy, infrastructure, and energy transition. The ‘SIP’ builds up on the UAE’s existing programme of funding into life sciences $1.1bn Mubadala’s commitment to UK life sciences t is a friendship whose beginning is shrouded in the mists of time, dating back to the 1800s. It’s charted two world wars, witnessed the birth of the UAE, endured global economic crises and emerged from a worldwide pandemic stronger than ever. And now, rather than look backwards on a comfortable nostalgia together, the UAE and UK have taken their bond to another level, a level very much focussed on the future with the signing of the $13.8bn (£10bn) UAE-UK Sovereign Investment Part- I u Sheikh Mohamed bin Zayed Al Nahyan (right) was received by UK Prime Minister Boris Johnson during his offi cial visit to the UK capital on 16 Septemberarabianbusiness.com 27 / UA E-UK DEAL I would say it’s a bit of both and everything in the middle. Clearly it is an important bond built on trust and longev- ity but the UAE, like everyone else, is a very smart investor and they will be looking for financial returns. Mubadala, and the broader UAE, are looking at sectors where there is a real capabil- ity that the UK is develop- ing and that they can work in partnership with. This would be not only to support growth in the UK but argu- ably, and even more impor- tantly, to further encourage UK businesses to establish a presence here in the UAE in those sectors that are going to drive this economy and world economies forward in the decades to come. Sheikh Mohamed bin Zayed Al Nahyan during a state visit by the Crown Prince. This will be underpinned by annual UK-UAE Strategic Dialogues, beginning later this year and chaired by the UK Foreign Secretary and her Emirati counterpart. The UK and the UAE share an important trade and invest- ment relationship, with total trade of £18.6bn ($25.7bn) in 2019, and two-way invest- ment of £13.4bn ($18.5bn) in the same year. While the ink is still drying on the deal, Arabian Business sits down with Simon Penney, Her Majesty’s trade commis- sioner for the Middle East, and Her Majesty’s Consul General for Dubai to delve deeper into its implications to the econo- mies of the UK and the UAE, and the global economy. How significant is this agreement as both nations emerge from the shadow of the pandemic and seriously get back to business and international trade? The UK is a long term friend of the UAE: you only have to go around all of the Emirates to see the involvement the UK has had over the years, from some of the early infrastruc- ture to a lot of the amazing buildings and beyond that you see today. So we build off a deep friendship but it’s all about looking forward. As the UAE looks to the next 50 years, it’s also looking about its strat- egy and how its economy will evolve as the reliance on hydrocarbons moves across to other industries. A lot of the sectors of the future are ones where the UK excels out but we need part- ners to develop them – not just through the provision of money, but also through the provision of relationships, capabilities and skills. The amount of $13.8bn is a significant vote of confi- dence in that relationship between the UK and the UAE. How much of this is based on old-fashioned bilateral relations and a great friendship versus a smart investment in the future that will pay off for both nations? Could you give us a broad idea of what life sciences encompasses? In its broadest definition, it’s everything that is healthcare related into the development, the research of new capabili- ties, and new processes in the provision globally of health- care. It has come to the global fore, particularly with Covid- 19, and is probably the most popular sector at the moment not only for investors, but also for R&D and university spinouts. So are you hoping there’s going to be white label- technology that’s created through this partnership? That is one such opportunity that can come out of it. But what we see in the UK is that a lot of the research that goes on in our universities is starting to feed its way out into the commercial sector. What we’re trying to do with Mubadala – and other inves- tors – is investing either directly in those companies that are spinning off out of universities, or through dedicated funds. A key aspect of the Life Science part of the investment partner- ship is that we’re also looking to attract dedicated Life Sciences funds, of which Mubadala is $25.2bn The total trade between the UK and UAE in 2019 “The UK and the UAE share an important trade and investment relationship” u The SIP will become the central investment platform under the new Partnership for the Future bilateral framework, believes Simon Penney28 Vol. 22/15, October 2021 C OVER S T O RY / UA E-UK DEAL going to be instrumental in establishing in the UK. It sounds like you’re almost creating, or investing in, an academy to create or iden- tify unicorns before they’re actually out in the market. That’s absolutely right. The fund-industry in the UK is very broad but, in certain sectors, we have gaps. In terms of Life Sciences, what we hope to achieve through this rela- tionship, and others, is that we avoid UK spinoffs and start- ups becoming someone else’s unicorns – we want them to be the UK unicorns that the UAE can share a significant part of. How has coronavirus played a part in this partnership and the investment in it? A recent report from Deloitte confirmed that the UK is the number one destination for foreign direct investment but more particularly that one of the areas that has inspired investment confidence into the UK is the way in which the country has dealt with the pandemic. But it’s also much more than just Covid-19. There are a lot of fundamentals as to what makes the UK an attractive destination but we as a govern- ment are focussing heavily on sectors that are going to drive the economy for decades to come – and that aligns very neatly with what the UAE, and all Gulf countries, are trying to do with their economy so there are natural synergies in us working much more closely together. Where will this partnership generate prosperity for the UAE as well as the UK? Firstly, the most obvious one is it is a further source of funding into the UK so it’s a vote of confidence in our economy. Thirdly, this creates jobs for UK people and that’s what it’s all about. It’s about creating jobs, building the economy and building back better. Figures from last year indicate the trade between the UAE and UK was around $12bn. How do you see that deal driving this forward? Outside of this deal, what’s your forecast for trade in the coming years? We saw quite a reduction in the Covid hit years but are very optimistic that we will return back on trend in the next year or two as we see the global economy pull out of the impact of the pandemic. But more particularly, we are very focussed on that Also, historically, we’ve tended to see investment focus more on the south- east of England whereas this partnership is particu- larly focussed on the whole of the United Kingdom. So it’s ensuring we get inward investment into areas of the UK that wouldn’t ordinarily have seen foreign investment funds. It therefore aligns very much with the UK’s leveling up and building-back agenda. number growing above trend. The UAE very clearly articu- lated its ‘10 by 10 ambition’ to grow trade by 10 percent every year for the next 10 years. It’s no coincidence that they’ve specifically identified the UK as being a country within which they want to achieve that ambition so we have shared ambitions about grow- ing exports in both directions. One of the mechanisms that is often highlighted to facili- tate are free trade agreements (FTA) and we do have a strong ambition and desire, now that we’ve left Brexit, to strike FTAs around the world. Our Secretary of State has gone on record saying that the GCC is a really impor- tant market for us and we do have an ambition at some point in the near future to commence discussions. Should we strike an FTA agreement, what do you think the impact of that will be on that trade relationship between the UK and this region? The Gulf in aggregate is the UK’s third largest export market globally outside of the European Union and that’s been done without a free trade agreement. This is because tariffs are not that high, the maximum being 5 percent, and you don’t see many non- tariff barriers. So I don’t think we should see FTAs as a pana- cea like you might in some other countries. But given the sheer volume of business that we already do, and the aspiration to do more, a free trade agreement will act as a further catalyst. In aggregate, if you multi- ply the tariffs across all of the exports it still adds up to a very big number so we will be reducing a fairly significant barrier to trade in both directions. u The UK Offi ce for Investment (OfI) and Mubadala signed an agreement to expand the UAE-UK Sovereign Investment Partnership (UAE-UK SIP) u Sheikh Mohamed bin Zayed during his visit to the Zayed Centre for Research into Rare Disease in Children in London $1.49bn The investment deployed since the SIP was launched in March 2021SAPPHIRE BASIN MIXERNext >